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WORKING IN AUSTRIA

When can I take my holidays after starting a new job in Austria?

If you are just starting a job in Austria, it might seem strange to be thinking of your holidays - but with nicer weather coming up, here are your rights.

Published: 10 April 2024 13:22 CEST
When can I take my holidays after starting a new job in Austria?
Austria offers many beautiful holiday destinations (Photo by Blaz Erzetic on Unsplash)

Starting a new job can be both exciting and daunting, particularly when it comes to understanding company policies, including vacation time. One common issue is when exactly employees can take their holidays after starting a new job in Austria.

Firstly, the good news is that Austria has a generous holiday allowance. Workers usually get at least 25 days of paid holiday leave, which can rise in some instances, such as if you have been an employer for 25 years (not necessarily in the same company).

In Austria, vacation time allocation for new employees typically follows a structured process governed by company policies, labour laws, and the specific collective agreement that applies to certain professions. 

According to labour regulations, employees in Austria accrue vacation days gradually over the course of the year. However, the specifics may vary depending on the company’s policies and the terms of employment.

READ ALSO: The probationary period rules new employees in Austria need to know

You’ll have to wait for your probationary period to be over

Employers in Austria often require new employees to complete a probationary period before becoming eligible for paid time off. This probationary period allows both the employee and the employer to assess mutual suitability and integration into the workplace.

During this time, employees may still accrue vacation days but may only be able to use them once the probationary period is completed.

During your first six months as a full-time worker, you are entitled to two days of paid leave for each month worked. This means that after working for one month (usually the probationary month), you can take two days off; after working for two, you can take four days off, and so on, but you can’t use your full 25-day allowance in these first six months. 

This no longer applies after six months, and you can use your allowance whenever you agree with your employer.

READ ALSO: Everything you need to know about annual leave in Austria

Can my boss dictate my holiday days?

Generally, your employer cannot force you to take a holiday on a specific date. Still, they might have company-wide holidays in addition to your allowance (for example, many companies offer Christmas to New Year’s Eve as holidays). There may be general guidelines, such as ensuring that not everyone takes the same two weeks off work. So, he could deny a holiday request.

On the other hand, in Austria, you have the right to choose one day when your employer cannot refuse your holiday request.

This is particularly useful if you want a religious holiday off work, to plan a family occasion, or to simply celebrate your birthday. You need to agree to this in writing with your employer at least three months before the date.

Member comments

  1. such as if you have been an employe[r] for 25 years.

    Typing mistake above in paragraph 1: should be EMPLOYEE not employer.

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WORKING IN AUSTRIA

Why are people in Austria paying more taxes despite federal reforms?

Workers in Austria are still among those with the highest tax burdens in the world, with the taxes and contributions taking more than 40 percent of wages even as the country introduced sweeping tax reforms.

Published: 26 April 2024 12:21 CEST
Why are people in Austria paying more taxes despite federal reforms?

It’s often said that Austria is a country with high quality of living and high taxes, but a new OECD study shows just how high the tax burden is here compared to other OECD countries.

According to the report, Austria has the third-highest tax burden on workers and the so-called “tax wedge”, how much of a worker’s wage is taken by the government,  increased as well.

According to the OECD, in most countries, the increase in labour taxation was primarily driven by increases in personal income tax.

This is because nominal wages increased in 37 out of 38 OECD countries as inflation remained above historic levels. However, since most of these countries do not have automatic indexation of tax systems, high inflation tends to increase workers’ tax liabilities by pushing them into higher tax brackets. 

However, Austria’s federal tax reforms removed this in the country in 2023. This means that once inflation rises, the tax brackets that define how much taxes you will pay on your income will also rise – and they have risen in 2023 and in 2024 since the change. 

The measure was known as the “end of the cold progression” in Austria and should have protected workers’ incomes from inflation losses.

READ ALSO: The tax benefits that parents and families receive in Austria

What is the tax ‘wedge’?

The OECD defines a tax wedge as “income tax plus employee and employer social security contributions, minus cash benefits.” 

In other words, if an employer has a labour cost of €100, how much will they actually see in their pockets, and how much of this goes to the state? According to the organisation, the percentage is the tax wedge.

In Austria, €100 earned by a single employee without children was taxed at an average of €47.2 last year. The amount was only smaller than in Germany (47.9 percent) and Belgium (52.7 percent) and it rose compared to the previous year when it was still at 46.9 percent.

The average of the 38 OECD countries was 34.8 percent.

Married single-earner couples with two children also have high tax burdens, with a tax wedge of 32.8 percent (OECD average: 25.7 percent), which is the eleventh-highest tax and contribution burden within the OECD for this group (2022: 13th place). For married dual-earner couples, the wedge was 40.6 percent.

The tax wedge for individuals or households with children is generally lower than those without children, as many OECD countries grant households with children a tax advantage or cash benefits.

READ ALSO: Why it’s worth filling in your annual tax return in Austria

Why is Austria’s tax burden higher this year?

Despite the tax reform presented by the government, Austria’s tax wedge has increased compared to the year before. 

The reason is the relief granted in Austria in 2022 in the form of one-off state payments. With the rising cost of living, the federal government released several temporary measures to help people in the country cushion the effects, including the popular €500 Klimabonus payment every person who had been a resident of Austria for at least six months was entitled to. 

These payments and increases in family allowances reduced the tax burden in 2022 – but they no longer exist or were drastically cut in 2023. Because of that, the tax burden is rising again. 

“The abolition of cold progression and the other measures have merely prevented the tax burden from rising more sharply,” Wifo economist Margit Schratzenstaller told Der Standard.

The report said the increased tax issues show that there is still a need for action. Compared to other industrialised countries, Austria’s tax burden on work for a single person without children is ten percentage points higher. Of course, the expert noted, the fact that many industrialised countries have a different social system with fewer publicly funded benefits also plays a role here. However, labour is also expensive in Austria compared to the EU average.

READ ALSO: What foreign residents in Austria should know about taxes

“The fact that the tax burden on the middle classes has increased is due to the government’s failure. Instead of structural relief, there have been one-off payments that have evaporated,” said Lukas Sustala, head of Neos-Lab, the think tank of the liberal opposition party.

NEOS representatives have urgently called for a ‘comprehensive tax reform’ to alleviate the heavy labour burden, with a significant reduction in non-wage labour costs, according to an ORF report.

In addition, NEOS proposes the creation of ‘tax incentives for full-time work’ – including a full-time bonus and tax exemption for overtime pay. Simultaneously, NEOS aims to eliminate ‘part-time incentives of any kind’, offering a potential boost to the economy and workers’ incomes.

Economist Schratzenstaller also recommends action: She suggests reducing social insurance contributions, for example, for health insurance companies. However, it’s important to note that intervening in this area could affect the largely autonomous financing of Austria’s healthcare system, which is funded mainly through workers’ and companies’ payments via social insurance contributions. 

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